Budget Falling Short

The saga of the FY 08 budget continues. You remember: no budget passed by the adjournment of the Illinois General Assembly last May; a budget bill finally passed in August; after a veto by Governor Blagojevich the budget was enacted in October; a BIMP was finally approved in January. Word is coming from Springfield that there is a shortfall in the current budget and many appropriations may not be enough to cover costs. We have heard just this past weekend about declining gambling income attributed to the “smoking ban” that became law in January. This is the revenue source that the Governor has been targeting for all of his increased funding plans.
The Illinois Commission on Government Forecasting and Accountability has warned that state revenues may fall $600 million short of what we need to balance the state budget for FY 08. The complete report can be found at: http://www.ctbaonline.org. This will result in delays in State payment of bills especially in the area of health and social services. Schools will also feel this pinch. General State Aid hold harmless funds will be pro-rated to 88.1%. The School Safety and Educational Improvement Block Grant will also be reduced since a provision in the BIMP allows NON-PUBLIC schools to access these funds for the first time in FY 08. The Governor vetoed the $10.1 million appropriated for this program which means that all public school will see a reduction in these funds as they are now shared with NON PUBLIC schools. These ADA Block Grant funds are the only truly discretionary funds that public schools receive and their loss will be hard felt.